PSX rebounds as KSE-100 gains over 1,260 points

Buying in heavyweight sectors helped PSX recover as investors looked past fresh Hormuz-related tensions

The Pakistan Stock Exchange (PSX) staged a strong recovery on Wednesday, with investors returning to equities after the previous session's sharp sell-off, suggesting the market had largely absorbed the shock triggered by renewed tensions surrounding the Strait of Hormuz.

The benchmark KSE-100 index remained firmly in positive territory by midday, although it had pared some of its early gains as investors booked profits.

At 12:39pm, the benchmark index was trading at 174,783.54, up 1,264.73 points, or 0.73%, from the previous close of 173,518.81. During the session, the index touched an intraday high of 176,701.38 before slipping from its peak to a low of 173,870.27.

Earlier in the session, the market had surged more than 2,100 points within minutes of opening as bargain hunters stepped in following Tuesday's steep decline.

Read More: PSX plunges 6,400 points on ME tensions

Buying interest remained concentrated in heavyweight sectors, including commercial banks, automobile assemblers, cement, oil and gas exploration companies, oil marketing companies, power generation and refinery stocks, helping keep the benchmark index in positive territory.

Trading activity remained healthy, with more than 135.68 million shares changing hands by midday, generating a turnover value of Rs10.92 billion.

However, as per recent trends, sentiment would likely remain sensitive to further developments on the geopolitical front, particularly any escalation that could affect global oil prices and regional financial markets.